Discounted Cash Flow (DCF) Analysis Levered
The Procter & Gamble Company (PG)
$145.13
+2.20 (+1.54%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 66,832 | 67,684 | 70,950 | 76,118 | 80,187 | 83,941.73 | 87,872.27 | 91,986.85 | 96,294.10 | 100,803.04 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 14,867 | 15,242 | 17,403 | 18,371 | 16,723 | 19,186.25 | 20,084.63 | 21,025.09 | 22,009.58 | 23,040.17 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -3,717 | -3,347 | -3,073 | -2,787 | -3,156 | -3,766.50 | -3,942.86 | -4,127.48 | -4,320.75 | -4,523.07 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 11,150 | 11,895 | 14,330 | 15,584 | 13,567 | 15,419.75 | 16,141.77 | 16,897.61 | 17,688.83 | 18,517.10 |
Weighted Average Cost Of Capital
| Share price | $ 145.13 |
|---|---|
| Beta | 0.385 |
| Diluted Shares Outstanding | 2,539.10 |
| Cost of Debt | |
| Tax Rate | 18.08 |
| After-tax Cost of Debt | 1.11% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 5.299 |
| Total Debt | 32,293 |
| Total Equity | 368,499.58 |
| Total Capital | 400,792.58 |
| Debt Weighting | 8.06 |
| Equity Weighting | 91.94 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 66,832 | 67,684 | 70,950 | 76,118 | 80,187 | 83,941.73 | 87,872.27 | 91,986.85 | 96,294.10 | 100,803.04 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 14,867 | 15,242 | 17,403 | 18,371 | 16,723 | 19,186.25 | 20,084.63 | 21,025.09 | 22,009.58 | 23,040.17 |
| Capital Expenditure | -3,717 | -3,347 | -3,073 | -2,787 | -3,156 | -3,766.50 | -3,942.86 | -4,127.48 | -4,320.75 | -4,523.07 |
| Free Cash Flow | 11,150 | 11,895 | 14,330 | 15,584 | 13,567 | 15,419.75 | 16,141.77 | 16,897.61 | 17,688.83 | 18,517.10 |
| WACC | ||||||||||
| PV LFCF | 14,691.07 | 14,652.23 | 14,613.48 | 14,574.84 | 14,536.30 | |||||
| SUM PV LFCF | 73,067.92 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 4.96 |
| Free cash flow (t + 1) | 18,887.45 |
| Terminal Value | 638,089.36 |
| Present Value of Terminal Value | 500,913.11 |
Intrinsic Value
| Enterprise Value | 573,981.03 |
|---|---|
| Net Debt | 25,079 |
| Equity Value | 548,902.03 |
| Shares Outstanding | 2,539.10 |
| Equity Value Per Share | 216.18 |